General Trading Companies - State-owned Foreign Trade Enterprise Development Model

By analyzing the development and reform of foreign trade system, the author discussed in detail the foreign trade enterprises, which are characterized by weak competitive positions both in the domestic and international market, having resulted from carrying out the special policies for years under the planned economy. Such being the case, there exists the necessity to reform the foreign trade enterprises. The author then analyzed the structure of the foreign trade industry, including competitors, substitute products, potential entry, buyers, and suppliers, etc.The author introduced the emergence, evolution, and development of the Japanese conglomerates, and illustrated how the Japanese conglomerates deal with the changes of circumstances, special global economy and information. On the basis of such analyses, the author discussed their operating matrix, specific operating styles and methods on the aspects of operating strategic management, and summarized the features of their business to evaluating the features of pluralistic operation and centralized operation or integration of products. The author summarized the actual circumstances and marketing elements of foreign trade enterprises and made the SWOT analysis. Meantime the author compared the foreign trade enterprises with the Japanese conglomerates in order to find out disparity, differences and similarities. There are great rationality and maneuverability to make the foreign trade enterprises develop into the similar Japanese conglomerates. The foreign trade enterprises should locate reasonably and use the experiences of successful Japanese conglomerates, including making operating strategy, setting up organizational structures and controlling in order to make the operating strategy with feasibility. By drawing lessons from the Japanese conglomerates, the author suggested that the operating strategy of the foreign trade enterprises should be made up of :â‘ low-cost strategy; â‘¡differentiation strategy; and â‘¢brand strategy; It is of great necessity to improve the competitive strategy of the foreign trade enterprises by reforming the organizational structure and diversifying the operating matrix.